ID: S140141561
Object of the article:
Distinguish between in-store and out-store logistics to generate consumer value.
Purpose:
Distinguish between in-store and out-store logistics and how they work to generate consumer value ,cost cutting and generating better financial choices for the customers.
Main ideas:
Generate consumer value by produce products to meet customer needs-
-Stores are very much dependent on logistics to provide ease of shopping, cost cutting and generating better financial choices for the customer
-The in-store logistics to control the total supply chain and they are more critical for small scale retailers
-The out-store logistics creates temptation for the suppliers and logistics firms to control the total supply chain
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It is the process of moving goods from their typical final destination for the purpose of capturing value or proper disposal
The importance of reverse logistics in e-commerce environment
1) ( Souq.com, Wadi.com, Namshi) use reverse logistic to protect the environment and promote recycling of resources, at the same time in order to standardize the Website and the protection of the right of consumers
2) E-commerce have changed the business environment With the large-scale e-commerce applications through increase return rate of transaction online, more companies recognize the importance of the reverse logistics to improve the customer satisfaction and enhance competitive advantage
3) E-commerce companies use Reverse Logistics and the Forward Logistics to organize all this fuctions: packaging, handling, transporting, storage, processing and other
4) Reverse logistics helps Namshi and Souq.com to reducing risks that may arise through virtual transaction to the lowest possible level through delivering the products at right place and right time
Reverse Logistics have many Problems
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Driving efficiency in repair processes in Software used for reverse logistics require videos or drawings that demonstrate to the repair technician how the work is to be performed
In the reverse logistics system, there is a high degree of uncertainty on the time and quantity in recovery process of the consumer or
...tbound Logistics: The outbound logistics include the movement of the finished goods from the manufacture to the retail stores or a warehousing facility for later use.
Per Kalogeropoulos (2016), the company is better able to ensure product availability while managing their costs because of their latest logistics initiative. They have recently created a network of deployment centers that reduces the time between when the product leaves a supplier to when it hits the shelf at the Home Depot store which drives profits higher. Parnell (2014), relays that companies who use low-cost strategy seek distribution channels that minimize cost. Home Depot’s new logistics initiative provides the company with economies of scale and a market advantage because it adds to their low-cost
Supply chains are all exercises that create or give an item as well as support to a client. Verifiably store network administration has been about decreasing expense. Overseeing inventory network expense is key vital wanting to stay aggressive in a worldwide business sector. All associations have an inventory network. A production network incorporates outside, inside, approaching, and active. Outside and inside supply chains are individuals, parts, crude material, crude sustenance, data, improvement of individuals and ventures, designing, work, completed items, and segments of items that will approaching supplies, use, stockpiling, appropriation and proficiently, to accomplish most extreme estimation of each. So as to be aggressive and reasonable
A supply chain is a system through which organizations deliver their products and services to their customers. The network begins with the basic ingredients to start the chain of supply, which are the suppliers that supply raw materials, ingredients, and so on. From there, it will transfer the supplies to the manufacturer who builds, assembles, converts, or furnishes a product. The chain now needs to get the product to the consumer by transporting the finished product from the manufacturer through a warehouse or distribution center. An example is that Wal-Mart has a nearby distribution center where products are delivered there and then split up to be delivered to a retail Wal-Mart. “Wal-Mart will take responsibility for breaking down larger loads and delivering the product to other Wal-Mart stores” (Ehring 1).
Sunil Chopra and Peter Mendl argue that inventory is one of the drivers of the supply chain performance and that it has a great impact as the other drivers, such as facilities and transportation which are the same as inventory being ‘Logistical Drivers’. Analyzing the position of inventory in the supply chain, certain factors of the inventory will be taken into account such as the responsiveness, economies of scale, the different variations of inventory, how other factors will affect the inventory, and transportation, which as stated before it is one of the drivers in the supply chain, Vs. inventory. All these concepts of inventory will be analyzed in the supermarkets domain and how crucial is inventory for the supply chain performance.
It is suggested for any organization to review, reassess any existing supply chain management or any delivery techniques, before developing a new supply chain method so that any exposure to high risk of failure is reduced. Somerset as a company taken advantage of outsourcing and transferred it product manufacturing to China leveraging low cost labor and raw material. The labor cost and other cheap material reduce Somerset overhead cost, but there is always the risk of not delivering product on time due to the foreign country political climate, change in tax and tariff and local
Inventory management is a method through, which a business handles tangible resources and materials to ensure availability of resources for use. It is a collection of interdisciplinary processes including a full circle from the demand forecasting, supply chain management, inventory control and reverse logistics. Inventory management is the optimization of inventories of manufactured goods, work in progress, and raw materials. According to Doucette (2001) inventory management can be challenging at times; however, the need for effective inventory management is largely seeing more as a necessity than a mere trend when customer satisfaction and service have become a prime reason for a business to stand apart from its competition. For example, Wal-Mart’s inventory management is one of the biggest contributors to the success of the company;
...e SMS will be sent) who can go to the branch to get his car. The shipping system records information about the sender such as the sender car, truck number, etc.. and it also records information about the client. Then these information are linked together. Reports about each product with information about client and sender are written (let us say weekly) and these reports are sent to the top management so that every process is monitored to follow any problem if found and try to enhance the procedure. Also this information can provide which branch is working the best and which is working the least so to enhance the quality of work. This is a strategy that the company is following in order to reach its objectives found in the mission.
The supply chain constitutes the processes, which goods or services go through to reach the end user, including the design, manufacture, and delivery stages (Buxmann et al. 2004). Therefore, it encompasses suppliers, manufacturers, transporters, warehouses, wholesalers, retailers, and customers. According to Datta et al. (2008), all businesses and companies are part of one or more supply chains and depend on them to thrive. Nowadays, most companies want to understand the supply chain concept and the specific roles they should play in it (Ertek & Eryılmaz 2008). Their main objective is to participate in profitable chains to gain a competitive advantage over their competitors.
Zanjirani F., Rezapour, S. & Kardar, L. (2011) Logistics operations and management concepts and models, 1st ed. London ; Elsevier.
All choices made by Seven-Eleven are structured to lower its transportation and receiving costs. For example, its area-dominance strategy of opening at least 50 to 60 stores in an area helps with marketing but also lowers the cost of replenishment. All manufacturing facilities are centralized to get the maximum benefit of capacity aggregation and also lower the inbound transportation cost from the manufacturer to the distribution center (DC). Seven-Eleven also requires all suppliers to deliver to the DC where products are sorted by temperature. This reduces the outbound transportation cost because of aggregation of deliveries across multiple suppliers. It also lowers the receiving cost. The information infrastructure is set up to allow store managers to place orders based on analysis of consumption data. The information infrastructure also facilitates the sorting of an order at the DC and receiving of the order at the store. The key point to emphasize here is that most decisions by Seven-Eleven are structured to aggregate transportation and receiving to make both cheaper.
Early supply chain management was delegated (classified) as logistics functions that included (involved) transportation. Today’s supply chain management has developed into the fabricated (manufactured) and appropriation (distribution) of supply through suppliers, production companies, manufactures and visibility, whereby diminishing the cost and reconciliation (integration) into the market through a gathering (group) of organization. The supplies traveled through the system by various distribution organizations. Supply chains are shaped through distribution organizations and supply
Logistics consists of those activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible price. Logistics is the process that controls and manages the movement of goods. These goods may be finished goods or raw materials being moved from one point to another in the most cost effective and efficient manner. Finally the finished goods reach to the end customer which fulfills the customer’s requirement after consumption. Logistics processes involved can be shown diagrammatically as:
Wholesalers acts as a lesion between manufacturers of commodities and other industries that are interesting in selling the same products. Along this distribution chain wholesalers usually purchase goods in large quantities and in turn sells them to retailers who ultimately supplies goods and services to consumers. Due to the available space at wholesale locations they are able to store products for distribution to retailers which reduces retailers storage costs. Wholesalers are able to store goods in large quantities which allow retailers to purchase in small quantities. Due to this option retailers are able to only purchase what is needed at that given point (Kotler & Keller, 2012). Additionally, because wholesalers are able to purchase goods
On the other hand, most factors prove otherwise. The retail industry does not have high Economies of Scale to be exploited in general . Yet, it is impossible to run department stores like Metro on a small scale . A large retail space, inventory, and warehouse are necessary to host a specialized portfolio of brands and products to better attract both customers and suppliers. Heavy capital requirements and operational expen...